Media World sacks its inventor

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Adam Clark, inventor of the controversial Adams Platform Technology, has been sacked as a consultant and asked to resign from the Media World Communications board.

A report into the effectiveness of the technology, considered at a Media World board meeting yesterday, concluded that APT failed under testing.

"Adam Clark is not able to demonstrate that APT is capable of producing compression of high quality video down telephone lines," said Media World chairman Michael Ramsden.

Technical staff also identified several "anomalies", including the fact that the video file still played even after the APT computer program had been removed from the computer.

The company, which is considering its legal options, has handed the report over to the Australian Securities and Investments Commission.

It is believed the fraud squad has also been asked to investigate.

Mr Clark, 28, was named in BRW's Young Rich list last week. He and his associates received about $16 million in fees and costs from Media World.

Mr Clark and his father, Graeme, were also asked to resign from the board, although the pair have asked for time to consider the technology report before they respond.

The board has abandoned its plans to relist and aims to seek compensation for shareholders.

Mr Ramsden said that only $1.5 million of the $4.6 million raised under the company's April prospectus remained.

"We have spent a reasonable amount of money in operations since then and we had to repay some loans that were inherited from Adams Platform, about $700,000," he said.

Asked whether Media World would pursue Mr Clark and his associates for the $16 million, Mr Ramsden would say only: "We are considering all our legal options."

He said the board had acted properly and had undertaken an adequate due diligence process, citing the report by American technology specialist Tolly Group upon which the company relied in coming to market. Media World is working with the Tolly Group to clarify the issue.